US Airways, United plan merger meeting, Wall Street Journal reports - East Valley Tribune: Business

US Airways, United plan merger meeting, Wall Street Journal reports

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Posted: Wednesday, May 28, 2008 5:56 pm | Updated: 11:41 pm, Fri Oct 7, 2011.

Tempe-based US Airways and Chicago-based United Airlines are still talking merger despite speculation to the contrary, according to sources cited by the Wall Street Journal.

The Journal is reporting that chief executives of the two major carriers plan to meet tomorrow to discuss outstanding issues including how the airlines would raise capital to fund the combination, how to resolve labor contract concerns and how much flexibility the combined carrier would have to reduce capacity.

The Journal attributed the information to “people familiar with the matter.”

The speculation comes just a day after reports from other unnamed sources that talks had fallen apart because of the troubled economy.

According to the Journal’s sources, Thursday’s meeting has been scheduled for several days, and, if the issues can be resolved expeditiously, the carriers CEOs could take a proposed deal to their respective boards in mid-June.

The Journal’s sources report there are no points of contention between the two carriers, and a merger could create $1.5 billion in cost savings.

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